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- **Strategic Growth**: 2026 group bookings up 12% YoY, excluding Hawaii; $325M invested in 15-20% IRR projects
- **Financial Resilience**: Q3 EBITDA down 12% YoY but 0.5% expense growth; $2.1B liquidity post-debt restructuring
- **Hawaii Recovery**: 2026 EBITDA rebound expected post-renovations; 2025 impact: $2.5M Q4 revenue loss
- **Risk Management**: Government shutdown could reduce Q4 RevPAR by 180bps; 2026 outlook hinges on Japan demand recovery

**【CEO Summary Section】**
- **Strategic Portfolio Refinement**: Sold 47 non-core assets since spin, focusing on 20 high-quality hotels (90% of portfolio value). 2026 group pace up 12% YoY, excluding Hawaii. 
- **Capital Allocation**: $325M invested in high ROI projects (15-20% IRR), e.g., Royal Palm renovation ($103M) targeting $28M EBITDA. 2026 outlook: mid-single-digit RevPAR growth with 2026 World Cup, Super Bowl, and 250th anniversary events.
- **Hawaii Challenges**: 2025 RevPAR down 18% in Q1, 13% in Q2, 9% in Q3; expects Q4 down ~20% due to strike and Japan demand lag. 2026 recovery driven by Waikoloa Phase 2 and Rainbow Tower completion.
- **Government Shutdown Impact**: $2.5M Q4 revenue loss, 180bps RevPAR drag. Lower end of guidance assumes shutdown continues; upper end assumes resolution.

**【CFO Financial Commentary】**
- **Q3 2025 Results**: 
  - Total revenue: $585M (-6% YoY)
  - Adjusted EBITDA: $130M (-12% YoY)
  - Adjusted FFO: $0.35/share
  - Expense growth: 0.5% YoY (vs. +2.7% in Q1)
- **Updated Guidance**: 
  - Full year RevPAR: -2.5% to -1.75% (vs. prior -1.5% to -0.5%)
  - Adjusted EBITDA: $595M-$620M (-$12.5M YoY)
  - Adjusted FFO: $1.85-$1.97/share
- **Balance Sheet**: 
  - $2.1B liquidity post-amended credit facility
  - 2026 debt repayments secured
  - No special dividend; $0.25Q4 dividend maintains 9% yield

**【Q&A Highlights】**
- **Expense Management**: 3Q cost control (0.5% YoY growth) driven by: 
  - Staffing adjustments
  - Procurement savings
  - Insurance premium reductions
  - Tax appeals
- **Dividend Policy**: 9% yield prioritized over buybacks; $50M retained for debt reduction/reinvestments
- **Hawaii Recovery**: 2026 EBITDA expected to rebound post-renovations; 2025 EBITDA: ~$150M (vs. $177M pre-strike)
- **Asset Sales Progress**: 2 assets under LOI, 3+ in active marketing; 2025 sales target: $300M-$400M

Park Hotels & Resorts Inc. (PK) Q3 2025 Earnings Call Transcript

- **Resilient Performance**: Q2 RevPAR flat YoY (excluding Miami), driven by resort and urban market strength. Total expenses grew just 1% YoY.
- **Strategic Dispositions**: Sold $80M asset, targeting $300-400M in noncore sales. Exited 3 low-margin hotels, boosting core portfolio margins by 70bps.
- **Capital Efficiency**: $103M renovation of Royal Palms South Beach (15-20% IRR), with Q4 2025 stabilization. Q4 2025 RevPAR growth expected at 3-5%.
- **Financial Strength**: Adjusted FFO per share $0.64, up $0.01 at midpoint. Refinancing $1.4B debt maturities to extend maturities and reduce leverage.
- **Hawaii Recovery**: Sequential improvement in market share, with Q4 2025 group pace +18%. 2026 EBITDA expected to stabilize near pre-strike levels.

**【CEO Summary Section】**
- **Q2 Performance**: RevPAR was flat year-over-year (YoY) excluding the Royal Palms South Beach, with strength in resort markets (Orlando, Key West, Puerto Rico) and urban areas (NYC, SF, Denver, Boston). Total expenses grew just 1% YoY, excluding the suspended Miami property.
- **Noncore Dispositions**: Sold Hyatt Centric Fisherman's Wharf for $80M (64x 2024 EBITDA) and plan to exit 18 noncore hotels, targeting $300-400M in proceeds. Closed Embassy Suites Kansas City and will exit DoubleTree Seattle Airport and Sonoma by year-end.
- **Core Portfolio Strength**: 20 consolidated hotels represent ~90% of portfolio value, with average RevPAR of $215 and EBITDA per key exceeding $40,000. Core portfolio expected to outperform U.S. average RevPAR growth.
- **Capital Allocation**: $103M renovation of Royal Palms South Beach (15-20% IRR, EBITDA to double), and $48M/Hawaii renovations. Q3 RevPAR expected to decline 4-5%, but Q4 to grow 3-5% on easier comps and group demand.

**【CFO Financial Commentary】**
- **Q2 Results**: GAAP RevPAR $196 (-1.6% YoY), excluding Hawaiian and Royal Palms, up 2%. Hotel revenues $645M, adjusted EBITDA $191M (29.6% margin). Adjusted FFO per share $0.64, beating expectations.
- **Balance Sheet**: Working to refinance $1.4B in 2026 debt maturities. Paid $0.25 dividend (9% yield), with $38.5M shares repurchased since 2022.
- **Guidance Update**: Full-year RevPAR -2% to flat, adjusted EBITDA $620M (+$2M midpoint), FFO $1.95. Expense control offset softer top-line growth.

**【Q&A Highlights】**
- **Cost Savings**: $24M annualized benefits from asset management (e.g., $5M insurance premium reduction, $10M operating efficiency gains).
- **Group Demand**: 2026 group pace flat vs. 2025, but 2027 up 4-5%. Hawaii group pace +50% YoY in Q4 2025, with Hilton Hawaiian Village lapping 2024 labor strike.
- **Hawaii Recovery**: Sequential improvement in market share, July occupancy >90%. 2026 EBITDA expected to stabilize near pre-strike levels.
- **Debt Refinancing**: Confident in completing $1.4B refinancing by Q3, with Bonnet Creek as potential future collateral.
- **Transaction Market**: Actively marketing noncore assets, with $300-400M target for 2025 dispositions.


Park Hotels & Resorts Inc. (PK) Q2 2025 Earnings Call Transcript

- **Resilient Q1 Performance**: Flat revenue despite tough comp, driven by Orlando (+14%) and Key West (+12%) outperformance, offset by Hawaii strike recovery (-18%).
- **Capital Allocation Focus**: $310M+ invested in 2025, including Miami renovation targeting 20%+ EBITDA growth and Hawaii Phase 2 upgrades.
- **Shareholder Returns**: $135M bought back YTD at 10%+ discount to NAV; dividend yield 10%.
- **Hawaii Recovery**: Hilton Hawaiian Village Q2 RevPAR -7% (vs. Q1 -18%), with full recovery expected by Q4 2025. Renovations driving 25% rate premium.
- **Updated Guidance**: RevPAR -1% to +2% for 2025, reflecting macro uncertainty but supported by group pace (+18% Q4) and limited international exposure (10% of room nights).

**【CEO Summary Section】**
- Q1 2025 revenue was flat year-over-year despite a tough comparison to Q1 2024, which saw 8% RevPAR growth. Key drivers included strong performance at Bonnet Creek (+14% RevPAR) and Casa Marina (+12% RevPAR), offset by a 420 basis point drag from Hilton Hawaiian Village recovering from a labor strike.
- Capital allocation: $80M+ invested in Q1, with $310M-$330M planned for 2025. Notable projects include a $100M renovation of Royal Palm South Beach (Miami) targeting 15%-20% returns, and Phase 2 renovations at Hilton Hawaiian Village and Hilton New Orleans.
- Share buybacks: 3.5M shares repurchased in Q1 ($45M), bringing total YTD to 11.5M shares ($135M). Repurchases continue at a 10%+ discount to NAV.
- Asset sales: On track to sell $300M-$400M of non-core hotels, with one asset under contract at attractive pricing. Since 2017, 45 hotels sold for >$3B.
- Hawaii outlook: Long-term growth supported by limited supply (no new rooms until 2029) and improving international demand. Q2 RevPAR expected to improve sequentially, with Q4 benefiting from easier comps post-labor strike.

**【CFO Financial Commentary】**
- Q1 2025: 
  - Total hotel revenues: $608M
  - Adjusted EBITDA: $144M (23.7% margin)
  - Adjusted FFO per share: $0.46
  - Dividend: $0.25/Q ($1.00 annualized, 10% yield)
- Full year guidance updated due to macro uncertainty:
  - RevPAR: -1% to +2% (vs. prior +1% to +4%)
  - Adjusted EBITDA: $590M-$650M (down 3% at midpoint)
  - Adjusted FFO: $1.79-$2.09 (down $0.11 at midpoint)
- Expense control: Comparable operating expenses +1% (excluding one-time items), with focus on managing labor costs and insurance renewals.

**【Q&A Highlights】**
1. **Asset Sales Update**: 
   - Confident in ability to transact despite market uncertainty. 1 asset under contract at attractive pricing; others in marketing pipeline. Team has >$3B in sales since 2017.
   - Core portfolio now 20 hotels (down from 25), with 85%+ value in top 20 assets.
2. **Hawaii Recovery**: 
   - Hilton Hawaiian Village Q1 RevPAR -18%, but improving sequentially (Q2 -7% vs. Q1). Expect mid-single-digit RevPAR growth by Q3, with full recovery by Q4 2025.
   - Renovations driving 25%-30% rate premium on upgraded rooms.
3. **Miami Renovation**: 
   - $100M project to double EBITDA at Royal Palm South Beach. Construction begins Q2, completion by June 2026. Targeting 15%-20% IRR.
4. **Demand Trends**: 
   - Leisure transient demand strong in Orlando (+8%), Miami (+25%), and Caribe. Business transient (10% of room nights) and government (3% of ADR) minimally impacted by macro uncertainty.
   - Q2 RevPAR expected flat YoY, with Q4 benefiting from easier comps and +18% group pace growth.

Park Hotels & Resorts (PK)-5 May 25-2025 Q1 Earnings call transcript

- **2024 Strategic Wins**: $200M asset sales improved RevPAR by $3, EBITDA margin +30bps. $1B+ ROI pipeline includes 15%-20% IRR Royal Palm renovation. 
- **2025 Growth Drivers**: Orlando (+17% RevPAR) and Key West (+29% RevPAR) lead; Hawaii group pace up 70%, Waikoloa EBITDA +20%. 
- **Financial Resilience**: 2024 EBITDA $652M, FFO $2.06. 2025 RevPAR 0%-3%, guided for 60bps margin decline. 
- **Debt Management**: $1.4B CMBS refinancing planned; 3-5x leverage target. 
- **Shareholder Returns**: $0.25 dividend (7.5%-8% yield); active asset recycling to close NAV gap. 


**【CEO Summary Section】**
- **2024 Performance Highlights**: Achieved sector-leading results with strategic asset disposals ($200M in 2024) and portfolio upgrades. Disposed of 3 hotels, improving RevPAR by $3 and EBITDA margin by 30bps. 
- **2025 Outlook**: Target $300M-$400M in non-core asset sales to enhance portfolio quality. Key projects include $100M Royal Palm renovation (expected 15%-20% IRR) and $1B+ ROI pipeline. 
- **Market Strengths**: Orlando (Bonnet Creek RevPAR +17%, EBITDA +36%) and Key West (Casa Marina RevPAR +29%) show strong transient demand. Hawaii recovery expected, with group pace up 70% at Waikoloa. 
- **Capital Allocation**: 80% of 2024 capital ($230M) reinvested in core portfolio; 2025 CapEx includes $75M in Hawaii renovations and $31M in New Orleans. 

**【CFO Financial Commentary】**
- **Q4 2024 Results**: Adjusted EBITDA $138M, FFO per share $0.39. Full-year EBITDA $652M, FFO $2.06. Excluding strike impacts, RevPAR +4.2%, EBITDA margin +30bps. 
- **2025 Guidance**: RevPAR growth 0%-3%, EBITDA margin 26.1%-27.7%. Guidance includes $17M EBITDA disruption from Royal Palm renovation. 
- **Liquidity & Debt**: $1.4B liquidity; targeting 3-5x leverage. CMBS refinancing for Hawaiian Village ($1.4B maturing 2026) under review. 
- **Dividend Policy**: Q1 2025 dividend $0.25/share, yielding 7.5%-8% at current prices. 

**【Q&A Key Takeaways】**
- **Hawaii Recovery**: Q1 2025 RevPAR down vs. 2024, but 2025 growth driven by lapping strike and 85% increase in convention room nights. 
- **Royal Palm Renovation**: Expected to double EBITDA post reopening in Q2 2026, targeting June 2026 World Cup. 
- **Capital Recycling**: 45 hotels disposed since 2017 ($3B+), with 2025 targeting aggressive asset sales to reinvest in core portfolio. 
- **Margins & Costs**: 2025 OpEx growth 3%-4%, offset by transient demand recovery and operational efficiency. 
- **Share Buybacks**: Trading at NAV discount; consider buybacks if market conditions warrant. 


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